Consensys acknowledges the SEC’s decision to drop the investigation into Ethereum as a major victory for the ETH ecosystem.
The software platform will continue to fight against the SEC’s regulatory overreach.
Pointing out the SEC’s regulatory limitations, Consensys posits that the regulator is reframing its authority,
The Securities and Exchange Commission has ended its investigation into Ethereum, a major win for the cryptocurrency ecosystem. However, software firm ConsenSys, a key player in the Ethereum space, has vowed to continue its lawsuit against the SEC, alleging regulatory overreach and potential harm to the industry.
Our fight continues. In our lawsuit, we also seek a declaration that offering the user interface software MetaMask Swaps and Staking does not violate the securities laws. It should not take a lawsuit to provide the much-needed regulatory clarity to allow an industry that serves…
— Consensys (@Consensys) June 19, 2024
According to an X (formerly Twitter) post by ConsenSys, the SEC has closed its probe into Ethereum 2.0, meaning ETH sales will not be considered securities violations. ConsenSys declared the SEC’s move a landmark victory for “Ethereum developers, technology providers, and industry participants.” However, the company added:
“The closing of the Ethereum investigation is momentous, but it’s not a cure-all for the many blockchain developers, technology providers, and industry participants who have suffered under SEC’s unlawful and aggressive crypto enforcement regime.”
ConsenSys affirmed it will proceed with its lawsuit against the SEC, alleging “aggressive regulatory overreach.” The company argued that the SEC lacks the authority to oversee global, peer-to-peer computer networks and is attempting to “reframe its authority.” ConsenSys highlighted the potential impact of the SEC’s policies on Congress and the Federal Reserve’s work on stablecoins, stating:
“If the SEC has its way, then all the work that Congress and other agencies such as the Federal Reserve and Treasury have done on stablecoins is effectively dead, thereby destroying a well-established U.S policy priority and giving the advantage in technological advancement to countries outside of the U.S.”
ConsenSys filed a lawsuit against the SEC and its commissioners alleging they were trying to “seize control over the future of cryptocurrency” through autocratic power. Questioning their scrutiny over Ethereum, ConsenSys stated, “The SEC’s unlawful seizure of authority over ETH would spell disaster for the Ethereum network, and for ConsenSys.”
The post SEC Backs Down on Ethereum, but ConsenSys Isn’t Backing Out appeared first on Coin Edition.
